E4-14 The adjusted trial balance for Karr Bowling Alley at December 31, 2008, contains the following accounts.

Price: $2.99


E4-14 The adjusted trial balance for Karr Bowling Alley at December 31, 2008, contains the
following accounts.

Debits Credits
Building $128,800 Common Stock $100,000
Accounts Receivable 14,520 Retained Earnings 15,000
Prepaid Insurance 4,680 Accumulated Depreciation—Building 42,600
Cash 18,040 Accounts Payable 12,300
Equipment 62,400 Note Payable 97,780
Land 64,000 Accumulated Depreciation—Equipment 18,720
Insurance Expense 780 Interest Payable 2,600
Depreciation Expense 7,360 Bowling Revenues 14,180
Interest Expense 2,600 $303,180
$303,180

Instructions
(a) Prepare a classified balance sheet; assume that $13,900 of the note payable will be paid
in 2009.
(b) Comment on the liquidity of the company